HYBE's profit jumps, beating expectations, led by album sales

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HYBE's profit jumps, beating expectations, led by album sales

Published: 02 May. 2023, 18:00

HYBE's headquarters in Yongsan District, central Seoul [HYBE]

HYBE’s first quarter net profit jumped 62.21 percent to 49.8 billion won ($37.2 million) on year due to robust sales of albums by the K-pop agency’s artists, such as Jimin of BTS, Tomorrow X Together and NewJeans.

The figure exceeded expectations of 42.8 billion won, as compiled by FnGuide, defeating worries of falling profit as BTS members go off to fulfill their mandatory military service.

Sales climbed 44.07 percent to 410.6 billion won, falling short of 428.3 billion won expectations.

Operating profit was 52.5 billion won, a 41.51 percent jump on year, beating the market consensus of 46.7 billion won.

The increase in profit and sales were driven by an increase in HYBE artist album sales, which jumped more than fourfold on year to 9.1 million units.

A total of 1.45 million units of “Face,” Jimin’s first solo album, which was released in March, were sold in the first week of release. Lead track “Like Crazy” landed on top of Billboard Hot 100, a first for any solo K-pop star.

The company sold 3.14 million units of “The Name Chapter: Temptation,” an EP from Tomorrow X Together, 1.3 million units of “OMG” by New Jeans, and 1.27 million albums by Seventeen in the first quarter.

Second quarter earnings are expected to be solid as well, reflecting album sales by BTS's Suga, Seventeen and Le Sserafim. Suga's "D-DAY," a solo album, was released last month and was followed by his solo world tour. About 9 million orders were recorded for “FML,” an EP by Seventeen.

A total of 1.38 million orders of “Unforgiven,” Le Sserafim's first full-length album, were recorded before Monday’s release.

Sales generated through indirect involvement of artists, normally merchandise, content and fandom activities, increased 32.8 percent on year to 176.1 billion won. Sales for content increased 79.8 percent to 87.3 billion won, which included sales from the film “BTS: Yet to Come in Cinemas,” released in local theaters in February. The film documented the band’s free concert held in Busan in October, which aimed to promote the city’s bid to host the World Expo in 2030.

Fan community platform Weverse’s monthly active user totals increased 10 percent compared to last quarter to 9.3 million, while Weverse Live, the app’s streaming service, surpassed 460 million views, an increase of 78.3 percent on year.

HYBE said that it plans to add 12 K-pop acts under SM Entertainment to Weverse this year, as well as American artists in the latter half.

HYBE plans to release a service dubbed “Weverse DM,” where fans can directly communicate by message with K-pop artists, as well as merchandise service “byFans,” where fans can personally design products related to their artists using their pictures and handwriting.

“This year will be one where achievements made by HYBE’s multi-label system are shown in tangible results,” said chief financial officer Lee Kyung-jun. “BTS member solo activities as well as large world tours by Seventeen, TXT, Enhypen and Le Sserafim, NewJeans, &Team will return to the K-pop scene and soon-to-debut boy band BoyNextDoor will showcase new kinds of music this year.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]